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FEreview

# FEreview - ECO 4933 Engineering Economics Practice Problems...

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ECO 4933 Engineering Economics Practice Problems Problem 1 If you make the following series of deposits at an interest rate of 10% compounded annually, what would be the total balance at the end of 10 years? A. \$ F = 22,256 B. \$ F = 24,481 * C. \$ F = 24,881 D. \$ F = 25,981 Problem 2 To withdraw the following \$ 1,000 payment series in the figure, determine the minimum deposit (P) you should make now if your deposits earn an interest rate of 10 % compounded annually. Note that you are making another deposit at the end of year 7 in the amount of \$ 500. With the minimum deposit P, your balance at the end of year 10 should be 0.

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Problem 3 What is the future worth of an equal quarterly payment series of \$2,500 for 10 years if interest rate is 9% compounded monthly? Problem 4 A couple is planning to finance their 5-year-old daughter's college education. They were able establish a college fund that earns 8% compounded annually. What annual deposit must be made from the daughter`s 5th birthday to her 16th birthday to meet the future college expenses shown in the following figure. Assume that today is her 5th birthday.
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FEreview - ECO 4933 Engineering Economics Practice Problems...

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